Typically, power generation plants provide electricity to end-users via an electrical distribution network. Power generated by a power plant is provided to a transmission network, which provides electricity to a distribution network, which provides electricity to end-users. Different companies may own different parts of an electrical distribution network, and different portions of electrical network may have different costs associated it. For example, the cost to generate electricity at one power generation plant can vary when compared with the next. Also, the cost to transmit a given amount of electricity over one portion of the transmission network can differ from the cost to transmit the same amount of electricity over a different portion of the transmission network.
One method to control the generation and distribution of electricity is called economic dispatch. Economic dispatch typically involves the short-term determination of the optimal output of a number of electricity generation facilities, to meet the system load, at the lowest possible cost, while providing power in a robust and reliable manner. Economic dispatch systems typically use specialized computer software that is configured to honor operational and system constraints of the available resources and corresponding transmission capabilities.